KARACHI: Federal Board of Revenue (FBR) has launched monitoring of sale and purchase in real estate sector by establishing dedicated zone for assessing developers and builders.
Sources in the FBR said that cases of builders and developers had been transferred to special circular established at Large Taxpayers Unit (LTU)-II, Karachi.
According to an official order made available to PkRevenue.com all the cases of tax offices in Sindh and Balochistan had been transferred to the newly established circle.
The sources said that the developers and builders were enjoying the final tax regime for the past several years.
However, through Finance Act, 2017 the taxation of such segments of taxpayers brought under documented economy.
These taxpayers will now require filing true declarations and also providing details of transactions made with their clients.
The special circle will conduct detailed audit of those taxpayers besides obtaining details of buyers.
According to the official order, the special circular for builders and developers established at the LTU-II Karachi would have jurisdiction over those cases which were earlier with the LTU Karachi, Corporate Regional Tax Office (CRTO) Karachi, RTO-II Karachi, RTO-III Karachi, RTO Hyderabad, RTO Sukkur, RTO Quetta and all cases of builders and developers presently assessed in LTU-II Karachi.
The FBR also notified setting up special circles at Islamabad and Lahore. The Islamabad circle will have jurisdiction over cases in Islamabad, Abbotabad, Peshawar, Rawalpind, Faisalabad, Gujranwala, Sargodha and Sialkot.
Further, the Lahore circle shall have jurisdiction over cases in LTU Lahore, CRTO Lahore, RTO-II Lahore, RTOs in Multan, Sahiwal and Bhawalpur.